Trade Recommendation: TRON
TRON/Bitcoin (TRX/BTC) looked bearish on June 1, 2018 when it took out support of 0.000008. This activated the double top pattern on the daily chart. The price action triggered numerous stop losses. Consequently, the pair plummeted to as low as 0.00000509 on July 10.
While the pair shed over 36% of its value in a month, it appears that the market is bound for a strong rally. This can be very profitable. We have technicals to support our view.
Technical analysis show that TRON/Bitcoin has broken out of a falling wedge pattern on the daily chart. This breakout is accompanied by multiple bullish signals.
First, we can see the daily RSI break out from its month long resistance that has kept the market bearish. This hints that TRX/BTC is gaining momentum. To affirm that view, we can see a bullish cross on the daily MACD.
Furthermore, the 4-day, 8-day, and 21-day moving averages are reversing their direction. All of these are happening while the Bollinger Bands are contracting. With 0.000005 support holding, we can expect an upward price movement very soon.
The strategy is to buy as close to 0.000005 as possible. As long as bulls hold this support, they have all the momentum they need to climb to our initial target of 0.000007.
The process can take more than a month.
Daily Chart of TRON/Bitcoin on Binance
As of this writing, the TRON/Bitcoin pair is trading at 0.00000548 on Binance.
Summary of Strategy
Buy: As close to 0.000005 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.